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frustration of purpose

   Also found in: Wikipedia 0.01 sec.

frustration of purpose n. sometimes called commercial frustration, when unexpected events arise which make a contract impossible to be performed, entitling the frustrated party to rescind the contract without paying damages. Example: Jack Appleseller contracts to buy a commercial building to rent out, and, while the sale is pending, the building is condemned by the city as unsafe for any use. Mr. Appleseller can back out of the purchase without obligation.



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The frustration of purpose test has been impliedly used to analyze local government action for conflict, if not expressly so, in City of Jacksonville v.
For example, Michigan courts have accepted the frustration of purpose defense in a suit for payment of child support payments when the child had died.
National Cart, the Eighth Circuit upheld summary judgment in favor of a manufacturer who terminated a distributor's contract for frustration of purpose.
 
 
 
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